Celsius Network Executives Deny Substantial Losses Despite Market Turmoil

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Blockchain
Celsius Network Executives Deny Substantial Losses Despite Market Turmoil

After reaching a peak of $3 trillion in market capitalization in November 2021, the crypto markets lost more than half of their value in a matter of weeks, leaving investors fearful and pessimistic about the market’s potential. Celsius Network’s executives say that the extreme volatility of the cryptocurrency market has not had a substantial impact on their company.

Celsius Network Unaffected by Market Instability

According to Celsius Network’s leadership, the significant volatility of the cryptocurrency market has had little effect on the project. The CEO of Celsius, Alex Mashinsky, apparently responded to a now-deleted remark by Twitter user David Belle in which he claimed the platform had been “completely wiped out.”

Mashinsky reassured his more than 172,000 Twitter followers that “all funds were secure” and that the platform was still operational. He noted the “extreme market volatility” presently impacting cryptocurrencies such as Terra (LUNA) and TerraUSD, a stablecoin (UST).

Extreme Volatility in the Crypto Market

As of the time of writing, the price of LUNA had fallen more than 96% in the last 24 hours to $0.19 following a tremendous sell-off, while the price of UST had risen by 22.91% and was selling at roughly $0.57. On May 10, as we previously mentioned, the Terra peg was extremely unstable as UST fell to $0.62 on the market.

Everyone was stunned when the price dropped to as low as $0.25 on Wednesday. Co-founder Do Kwon of Terra hinted at a “recovery plan” on Tuesday and subsequently added that he backed community requests to increase the project’s minting capacity. 

Mashinsky, on the contrary, maintained that the platform was “not involved in any Luna bailout” to save the project.

Celius’s chief financial officer, Rod Bolger, stated that the company’s primary objective is to ensure the safety and security of all digital assets on its platform.

“Our front office teams also think and act like risk managers to ensure that we are not exposed in any significant way to market swings. Our liquidity position remains very strong.”

Because of the uncertainties surrounding the de-pegging of UST from the US dollar, the price of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) has fallen by over 21% in the preceding week. Binance, the world’s largest crypto exchange, momentarily blocked LUNA and UST withdrawals on Monday due to congestion on the network.

Celsius Network Continues to Push DeFi

In April, Celsius Network, which provides investors with profitable lending solutions, announced the launch of a new custody solution for clients in the United States. According to the recent update, the company has established new instructions on how customers can use their crypto holdings as collateral for funding in accordance with US legislation.

In spite of the improvements imposed by Celsius Network, the project’s backers have reaffirmed their unwavering commitment to pushing for financial independence.
Earlier this year, CelsiusX, the company’s cross-chain liquidity bridge, was launched. The site intends to widen the range of opportunities for crypto fans looking for intuitive methods of generating returns in the DeFi sector to increase.

Rony Roy

Rony Roy is an electrical engineer turned tech author in the Cryptocurrency space. He got block-chained in 2012 and fell in love with tech and its use-cases and has been writing his way through innovations in this emerging sector. Over the years, he has worked with multiple Blockchain projects and premier cryptocurrency exchanges both national and international.